“A Powerful Transformation: FE CREDIT Pens the Next Chapter in Consumer Finance.”

From Pioneer to Strategic Transformation

Established in 2010, FE CREDIT was one of the first to lay the foundation for modern consumer finance in Vietnam. With a mission to extend consumer credit to the unbanked, such as factory workers, small merchants, and the general public, the company opened the doors of financial inclusion to millions nationwide.

Its leadership position was established through an effective mass-market customer acquisition strategy: a vast distribution network, quick and easy approval processes, and a diverse range of products catering to consumer needs and enhancing their quality of life. During its growth cycle, FE CREDIT’s market share reached over 50% at its peak, contributing up to 40% to VPBank’s consolidated profits.

However, in the journey to conquer new heights, every business faces challenges and must adapt quickly and flexibly. The post-Covid-19 context and the increasing infiltration of technology in the financial sector demanded a new growth model.

As a market leader, FE CREDIT embarked on a strategic transformation in 2023, continuously enhancing its service quality and delivering professional, transparent, and sustainable values to usher consumer finance into a new era.

Putting Customers at the Heart

At FE CREDIT, technology is extensively applied throughout the customer journey, ensuring seamless and convenient experiences. Big Data analytics and Artificial Intelligence (AI) serve as both a tool to expand access to convenient and rapid financial services and a means to design tailored products for specific needs.

The AI and Big Data-driven credit assessment model also shortens approval times while improving accuracy in evaluating borrowers’ financial capabilities and credit behavior, thus enhancing FE CREDIT’s risk management capabilities. The company has also integrated AI into its smart chatbot system, providing 24/7 support to over 130,000 users monthly.

FE CREDIT developed the multi-functional financial application FE ONLINE 2.0, integrating various products, services, and features, including cash loans, credit cards, digital banking, transaction inquiries, and loan management, all accessible through a few simple steps on mobile devices.

Placing customers at the center, FE CREDIT expanded its product portfolio beyond its core cash loan segment to include phone and appliance installment loans, motorcycle loans, credit cards, and linked insurance products to cater to consumers’ diverse financial needs. With deep insights into customer behavior and preferences at specific times, the company also focuses on developing new features for its products, thereby personalizing financial solutions.

In doing so, FE CREDIT not only enhances its loan portfolio quality but also strengthens customer retention, a core element in building sustainable growth.

FE CREDIT forges strong connections with its customers to deliver tailored solutions that genuinely address their financial needs. Image: FE CREDIT.

FE CREDIT is building an efficient operating model with professional governance and internationally standardized processes, backed by leading financial institutions, including VPBank and SMBC Group.

The company optimizes resources and receives full support from its parent bank, VPBank, leveraging its capital advantages and diverse ecosystem to create a strong foundation for growth. Meanwhile, SMBC Group’s emphasis on continuous improvement, discipline, and customer-centricity contributes to standardized operations and a noticeable transformation toward a sustainable consumer finance model.

The efforts in FE CREDIT’s restructuring and strategic shift are bearing fruit, with five consecutive profitable quarters as of Q2 2025. In the first two quarters of this year alone, the company achieved nearly VND 270 billion in pre-tax profits. Key indicators, including capital adequacy, operational efficiency, and core credit quality, have shown significant improvements, testifying to the company’s sustainable and resilient direction.

As the consumer finance industry faces new challenges and expectations, FE CREDIT not only adapts but also takes a proactive role in shaping the future. With a clear strategic shift, a robust technological foundation, and a sustainable development orientation, the company continues its pioneering journey, delivering exceptional value to customers, shareholders, and society.